Summit Financial Group Reports Record Quarterly EPS and Net Income

4/22, 12:00 PM (Source: GlobeNewswire)

MOOREFIELD, W.Va., April 22, 2021 (GLOBE NEWSWIRE) -- Summit Financial Group, Inc. (“Company” or “Summit”) (NASDAQ: SMMF) today reported first quarter 2021 net income of $10.4 million, or $0.80 per diluted share, both representing a quarterly record. In comparison, earnings for fourth quarter 2020 were $10.3 million, or $0.79 per diluted share, and for first quarter 2020 were $4.51 million, or $0.35 per diluted share.

H. Charles Maddy, III, President and Chief Executive Officer commented, “For the second consecutive quarter, Summit achieved both record quarterly earnings per share and net income in Q1 2021. I am particularly pleased by our continued strong core operating performance, highlighted by our strong year-over-year growth in revenue, all while maintaining a relatively stable net interest margin and well-controlled noninterest expenses. Such results serve to validate not only our core growth strategies, but our ability to remain disciplined despite somewhat challenging economic conditions. I am inspired by our gaining momentum towards our goal to be a consistently growing, high-performing community banking institution.”

Highlights for Q1 2021

  • Net interest income was nearly unchanged compared to Q4 2020, despite Q1 2021 having two less days than Q4 2020, and increased 22.4 percent year over year, primarily due to loan growth and lower funding costs.
  • Net interest margin in Q1 2021 decreased 11 basis points to 3.65 percent as compared to the linked quarter, as yield on interest earning assets decreased 20 basis points while the cost of deposits and other funding declined 10 basis points.
  • Excluding mortgage warehouse lines of credit and PPP loans, loan balances increased a net $135.8 million during the quarter.
  • Recorded provision for credit losses of $1.50 million in Q1 2021 compared to $3.00 million in Q4 2020 and $5.25 million in Q1 2020; our increased credit provisions in 2020 were principally due to the estimated potential future economic impact of the COVID-19 crisis.
  • Efficiency ratio was 49.79 percent compared to 49.38 percent in the linked quarter and 51.41 percent for Q1 2020.
  • Net foreclosed properties expenses decreased to $227,000 in Q1 2021 compared to $676,000 in Q4 2020, as net losses on sales of foreclosed properties in Q1 2021 totaled $113,000 compared to $489,000 in Q4 2020, and write downs of foreclosed properties to estimated fair values totaled $23,000 in Q1 2021 compared to $64,000 in Q4 2020. During Q1 2020, such write downs totaled $946,000 and realized net gains were $61,000.
  • Realized $476,000 securities gains in Q1 2021 compared to $912,000 in the linked quarter and $1.04 million in Q1 2020.
  • Nonperforming assets as a percentage of total assets increased slightly to 1.21 percent compared to 1.16 percent for the linked quarter and 1.16 percent at first quarter end 2020.

Results from Operations

Total revenue for first quarter 2021, consisting of net interest income and noninterest income, increased 20.4 percent to $31.2 million, which included $476,000 in realized securities gains, compared to $25.9 million for first quarter 2020.

For the first quarter of 2021, net interest income was $26.3 million, an increase of 22.4 percent from the $21.4 million reported in the prior-year first quarter and remained nearly unchanged compared to the linked quarter. The net interest margin for first quarter 2021 was 3.65 percent compared to 3.76 percent for both the linked quarter and the year-ago quarter. Excluding the impact of accretion and amortization of fair value acquisition accounting adjustments, Summit’s net interest margin would have been 3.60 percent for Q1 2021, 3.70 percent for Q4 2020 and 3.70 percent for Q1 2020.

Noninterest income, consisting primarily of service fee income from community banking activities and trust and wealth management fees, for first quarter 2021 was $4.97 million compared to $5.78 million for the linked quarter and $4.50 million for the comparable period of 2020, which included realized securities gains of $476,000 in Q1 2021, $912,000 in the linked quarter and $1.04 million in Q1 2020. Excluding realized securities gains, noninterest income was $4.50 million for first quarter 2021 and $3.46 million for first quarter 2020. Mortgage origination revenue was $998,000 in Q1 2021 compared to $1.16 million for Q4 2020 and $214,000 in Q1 2020 due to higher volumes of secondary market loans driven primarily by historically low interest rates.

We recorded a $1.50 million provision for credit losses during first quarter 2021 compared to $3.00 million for the linked quarter and $5.25 million in Q1 2020.

Q1 2021 total noninterest expense decreased 1.0 percent to $16.4 million compared to the linked quarter and increased 9.6 percent compared to $15.0 million for the prior-year first quarter. This year-over-year increase resulted primarily due to the acquisition of Cornerstone, MVB Bank branches and WinFirst during 2020. Additionally, other significant factors contributing to the changes in total noninterest expense period over period are as follows: decreased write downs of foreclosed properties to estimated fair values totaling $23,000 in Q1 2021 compared to $64,000 in Q4 2020 and $946,000 in Q1 2020, net losses on sales of foreclosed properties in Q1 2021 of $113,000 compared to $489,000 in Q4 2020 and net gains of $61,000 during Q1 2020 and deferred director compensation expense totaling $236,000 in Q1 2021, compared to $571,000 in Q4 2020 and income of $483,000 in Q1 2020.

Balance Sheet

At March 31, 2021, total assets were $3.25 billion, an increase of $141.8 million, or 4.6 percent since December 31, 2020. Total loans, net of unearned fees and allowance for loan losses, were $2.42 billion at March 31, 2021, up $38.1 million, or 1.6 percent, from the $2.38 billion reported at year-end 2020. Loans, excluding mortgage warehouse lines of credit and PPP loans, increased $135.8 million during the quarter, or 26.0 percent (annualized), while net mortgage warehouse lines and PPP loans decreased $83.2 million and $12.6 million, respectively.

At March 31, 2021, core deposits were $2.61 billion, an increase of $149.8 million, or 6.1 percent, since year end 2020. During Q1 2021, checking deposits increased $118.5 million or 8.6 percent, core time deposits declined by $4.0 million or 0.9 percent and savings deposits increased $35.3 million or 5.7 percent.

Shareholders’ equity was $293.4 million as of March 31, 2021 compared to $281.6 million at December 31, 2020.

Tangible book value per common share increased to $18.47 as of March 31, 2021 compared to $17.50 at December 31, 2020 and $17.17 at March 31, 2020. Summit had 12,950,714 outstanding common shares at Q1 2021 quarter end compared to 12,942,004 at year end 2020.

As announced in Q1 2020, the Board of Directors authorized the open market repurchase of up to 750,000 shares of the issued and outstanding shares of Summit's common stock. The timing and quantity of stock purchases under this repurchase plan are at the discretion of management. During Q1 2021, no shares of our common stock were repurchased under the Plan.

Asset Quality

We incurred net loan charge-offs of $189,000 in first quarter 2021 (0.03 percent of average loans annualized), compared to fourth quarter 2020 net loan charge-offs of $239,000 while $1.99 million and $2.34 million were added to the allowance for loan credit losses through the provision for credit losses during Q1 2021 and Q4 2020, respectively. The allowance for loan credit losses stood at 1.39 percent of total loans as of March 31, 2021, compared to 1.34 percent at year-end 2020.

During Q1 2021, we decreased our allowance for credit losses on unfunded loan commitments $485,000 primarily due to an improved economic forecast and during Q4 2020, we added $665,000 through the provision for credit losses.

As of March 31, 2021, nonperforming assets (“NPAs”), consisting of nonperforming loans, foreclosed properties and repossessed assets, totaled $39.3 million, or 1.21 percent of assets, which included a $3.3 million downgraded client relationship in the hospitality industry, compared to NPAs of $35.9 million, or 1.16 percent of assets at the linked quarter-end and $29.1 million, or 1.16 percent of assets at the end first quarter 2020. The Q1 2021 increase was partially offset by sales of $1.67 million of foreclosed properties during the quarter.

The following tables summarize the aggregate balances of loans the Company has modified as result of the COVID-19 pandemic as of March 31, 2021 and December 31, 2020 classified by types of loans and impacted borrowers.

  Loan Balances Modified Due to COVID-19 as of 3/31/2021
Dollars in thousandsTotal Loan
Balance as of
3/31/2021
 Loans Modified
to Interest Only
Payments
Loans Modified
to Payment
Deferral
Total Loans
Modified
Percentage
of Loans
Modified
Hospitality Industry$123,829$14,546$9,154$23,70019.1%
Non-Owner Occupied Retail Stores 146,837 7,223 - 7,2234.9%
Owner-Occupied Retail Stores 143,246 - - -0.0%
Restaurants 8,192 - - -0.0%
Oil & Gas Industry 16,831 - - -0.0%
Other Commercial Loans 1,235,204 - 581 5810.0%
Total Commercial Loans 1,674,139 21,769 9,735 31,5041.9%
Residential 1-4 Family Personal 292,846 12 2,282 2,2940.8%
Residential 1-4 Family Rentals 184,108 - - -0.0%
Home Equity Loans 77,684 - - -0.0%
Total Residential Real Estate Loans 554,638 12 2,282 2,2940.4%
Consumer Loans 32,924 - 76 760.2%
Mortgage Warehouse Loans 187,995 - - -0.0%
Credit Cards and Overdrafts 2,375 - - -0.0%
Total Loans$ 2,452,071$ 21,781$ 12,093$ 33,8741.4%
      


  Loan Balances Modified Due to COVID-19 as of 12/31/2020
Dollars in thousandsTotal Loan
Balance as of
12/31/2020
 Loans Modified
to Interest Only
Payments
Loans Modified
to Payment
Deferral
Total Loans
Modified
Percentage of
Loans
Modified
Hospitality Industry$121,502$40,513$12,930$53,44344.0%
Non-Owner Occupied Retail Stores 135,405 7,223 447 7,6705.7%
Owner-Occupied Retail Stores 126,451 2,317 1,246 3,5632.8%
Restaurants 7,481 - - -0.0%
Oil & Gas Industry 17,152 - - -0.0%
Other Commercial Loans 1,134,759 12,006 286 12,2921.1%
Total Commercial Loans 1,542,750 62,059 14,909 76,9685.0%
Residential 1-4 Family Personal 305,093 159 1,754 1,9130.6%
Residential 1-4 Family Rentals 194,612 148 73 2210.1%
Home Equity Loans 81,588 - - -0.0%
Total Residential Real Estate Loans 581,293 307 1,827 2,1340.4%
Consumer Loans 33,906 48 143 1910.6%
Mortgage Warehouse Loans 251,810 - - -0.0%
Credit Cards and Overdrafts 2,394 - - -0.0%
Total Loans$ 2,412,153$ 62,414$ 16,879$ 79,2933.3%
      

About the Company

Summit Financial Group, Inc. is a $3.25 billion financial holding company headquartered in Moorefield, West Virginia. Summit provides community banking services primarily in the Eastern Panhandle, Southern and North Central regions of West Virginia, the Northern, Shenandoah Valley and Southwestern regions of Virginia and the central region of Kentucky, through its bank subsidiary, Summit Community Bank, Inc., which operates 43 banking locations.

FORWARD-LOOKING STATEMENTS

This press release contains comments or information that constitute forward-looking statements (within the meaning of the Private Securities Litigation Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Words such as “expects”, “anticipates”, “believes”, “estimates” and other similar expressions or future or conditional verbs such as “will”, “should”, “would” and “could” are intended to identify such forward-looking statements.

Although we believe the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially. Factors that might cause such a difference include: the effect of the COVID-19 pandemic, including the negative impacts and disruptions on the communities we serve, and the domestic and global economy, which may have an adverse effect on our business; current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth; fiscal and monetary policies of the Federal Reserve; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; the successful integration of operations of our acquisitions; changes in banking laws and regulations; changes in tax laws; the impact of technological advances; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; and changes in the national and local economies. We undertake no obligation to revise these statements following the date of this press release.

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)  
Quarterly Performance Summary (unaudited)   
Q1 2021 vs Q1 2020   
    
  For the Quarter EndedPercent
Dollars in thousands3/31/20213/31/2020Change
Statements of Income   
 Interest income   
 Loans, including fees$27,538 $25,2359.1%
 Securities 2,157  2,310-6.6%
 Other 67  98-31.6%
 Total interest income 29,762  27,6437.7%
 Interest expense   
 Deposits 2,496  5,351-53.4%
 Borrowings 1,014  84919.4%
 Total interest expense 3,510  6,200-43.4%
 Net interest income 26,252  21,44322.4%
 Provision for credit losses 1,500  5,250n/m
 Net interest income after provision   
 for credit losses 24,752  16,19352.9%
     
 Noninterest income   
 Trust and wealth management fees 638  665-4.1%
 Mortgage origination revenue 998  214366.4%
 Service charges on deposit accounts 1,100  1,263-12.9%
 Bank card revenue 1,341  93343.7%
 Realized securities gains 476  1,038-54.1%
 Bank owned life insurance and annuity income 298  26412.9%
 Other income 123  125-1.6%
 Total noninterest income 4,974  4,50210.5%
 Noninterest expense   
 Salaries and employee benefits 9,004  7,67217.4%
 Net occupancy expense 1,174  88333.0%
 Equipment expense 1,581  1,42910.6%
 Professional fees 338  387-12.7%
 Advertising and public relations 90  152-40.8%
 Amortization of intangibles 405  429-5.6%
 FDIC premiums 277  16567.9%
 Bank card expense 573  50313.9%
 Foreclosed properties expense, net 227  966-76.5%
 Merger-related expense 440  788-44.2%
 Other expenses 2,324  1,62543.0%
 Total noninterest expense 16,433  14,9999.6%
 Income before income taxes 13,293  5,696133.4%
 Income taxes 2,933  1,190146.5%
 Net income$10,360 $4,506129.9%


SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)  
Quarterly Performance Summary (unaudited)  
Q1 2021 vs Q1 2020  
     
  For the Quarter EndedPercent
  3/31/20213/31/2020Change
Per Share Data   
 Earnings per common share   
 Basic$0.80 $0.35 128.6%
 Diluted$0.80 $0.35 128.6%
     
 Cash dividends$0.17 $0.17 0.0%
 Dividend payout ratio 20.6% 49.1%-58.0%
     
 Average common shares outstanding   
 Basic 12,942,099  12,975,429 -0.3%
 Diluted 13,002,062  13,028,409 -0.2%
     
 Common shares outstanding at period end 12,950,714  12,920,244 0.2%
     
Performance Ratios   
 Return on average equity 14.51% 6.92%109.7%
 Return on average tangible equity 18.49% 8.55%116.3%
 Return on average assets 1.31% 0.73%79.5%
 Net interest margin (A) 3.65% 3.76%-2.9%
 Efficiency ratio (B) 49.79% 51.41%-3.2%
     

NOTE (A) – Presented on a tax-equivalent basis assuming a federal tax rate of 21%.

NOTE (B) – Computed on a tax equivalent basis excluding merger-related expenses, gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles.

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)    
Five Quarter Performance Summary (unaudited)     
      
  For the Quarter Ended
Dollars in thousands3/31/202112/31/20209/30/20206/30/20203/31/2020
Statements of Income     
 Interest income     
 Loans, including fees$27,538 $27,897 $26,807 $25,624 $25,235
 Securities 2,157  2,228  2,382  2,253  2,310
 Other 67  51  57  60  98
 Total interest income 29,762  30,176  29,246  27,937  27,643
 Interest expense     
 Deposits 2,496  2,956  3,552  4,186  5,351
 Borrowings 1,014  1,014  928  685  849
 Total interest expense 3,510  3,970  4,480  4,871  6,200
 Net interest income 26,252  26,206  24,766  23,066  21,443
 Provision for credit losses 1,500  3,000  3,250  3,000  5,250
 Net interest income after provision     
 for credit losses 24,752  23,206  21,516  20,066  16,193
 Noninterest income     
 Trust and wealth management fees 638  626  622  582  665
 Mortgage origination revenue 998  1,163  780  641  214
 Service charges on deposit accounts 1,100  1,305  1,138  882  1,263
 Bank card revenue 1,341  1,237  1,237  1,087  933
 Realized securities gains 476  912  1,522  -  1,038
 Bank owned life insurance and annuity income 298  233  795  275  264
 Other income 123  301  113  131  125
 Total noninterest income 4,974  5,777  6,207  3,598  4,502
 Noninterest expense     
 Salaries and employee benefits 9,004  8,501  8,108  7,930  7,672
 Net occupancy expense 1,174  1,046  1,057  977  883
 Equipment expense 1,581  1,502  1,474  1,360  1,429
 Professional fees 338  370  364  417  387
 Advertising and public relations 90  207  145  93  152
 Amortization of intangibles 405  409  412  410  429
 FDIC premiums 277  261  320  110  165
 Bank card expense 573  573  589  560  503
 Foreclosed properties expense, net 227  676  607  240  966
 Merger-related expenses 440  218  28  637  788
 Other expenses 2,324  2,843  2,405  2,463  1,625
 Total noninterest expense 16,433  16,606  15,509  15,197  14,999
 Income before income taxes 13,293  12,377  12,214  8,467  5,696
 Income tax expense 2,933  2,126  2,594  1,518  1,190
 Net income$10,360 $10,251 $9,620 $6,949 $4,506


SUMMIT FINANCIAL GROUP, INC. (NASDAQ:  SMMF)
Five Quarter Performance Summary (unaudited)
              
   For the Quarter Ended 
   3/31/2021   12/31/2020   9/30/2020   6/30/2020   3/31/2020 
 Per Share Data                    
 Earnings per common share                   
 Basic$0.80  $0.79  $0.74  $0.54  $0.35 
 Diluted$0.80  $0.79  $0.74  $0.54  $0.35 
                     
 Cash dividends$0.17  $0.17  $0.17  $0.17  $0.17 
 Dividend payout ratio 20.6%  21.5% 22.9% 31.7%  49.1%
                     
 Average common shares outstanding                   
 Basic 12,942,099   12,932,768   12,922,158   12,911,979   12,975,429 
 Diluted 13,002,062   12,980,041   12,949,584   12,943,804   13,028,409 
                     
 Common shares outstanding at period end 12,950,714   12,942,004   12,932,415   12,922,045   12,920,244 
                     
 Performance Ratios                    
 Return on average equity 14.51%  14.90%  14.38%  10.75%  6.92%
 Return on average tangible equity 18.49%  18.70%  18.12%  13.57%  8.55%
 Return on average assets 1.31%  1.37%  1.31%  1.02%  0.73%
 Net interest margin (A) 3.65%  3.76%  3.64%  3.68%  3.76%
 Efficiency ratio (B) 49.79%  49.38%  48.95%  51.97%  51.41%

 

NOTE (A) – Presented on a tax-equivalent basis assuming a federal tax rate of 21%.

NOTE (B) – Computed on a tax equivalent basis excluding merger-related expenses, gains/losses on sales of assets, write-downs of OREO properties to fair value and amortization of intangibles.

SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)     
Selected Balance Sheet Data (unaudited)     
       
Dollars in thousands, except per share amounts3/31/202112/31/20209/30/20206/30/20203/31/2020
       
Assets     
 Cash and due from banks$20,732  $19,522  $16,257  $16,572  $18,633 
 Interest bearing deposits other banks 155,865   80,265   92,729   26,218   22,821 
 Debt securities, available for sale 311,384   286,127   297,989   322,539   305,045 
 Debt securities, held to maturity 99,457   99,914   91,600   80,497   - 
 Loans, net 2,418,029   2,379,907   2,222,450   2,192,541   1,982,661 
 Property held for sale 13,918   15,588   17,831   17,954   18,287 
 Premises and equipment, net 53,289   52,537   52,880   51,847   47,078 
 Goodwill and other intangible assets 54,239   55,123   48,101   48,513   34,132 
 Cash surrender value of life insurance policies and annuities 59,740   59,438   57,029   55,315   46,497 
 Other assets 61,482   57,963   49,996   49,355   38,168 
 Total assets$3,248,135  $3,106,384  $2,946,862  $2,861,351  $2,513,322 
       
Liabilities and Shareholders' Equity     
 Deposits$2,725,010  $2,595,651  $2,451,891  $2,451,769  $2,044,914 
 Short-term borrowings 140,145   140,146   140,145   90,945   161,745 
 Long-term borrowings and     
    subordinated debentures 49,681   49,652   50,292   20,297   20,301 
 Other liabilities 39,854   39,355   32,571   34,909   30,337 
 Shareholders' equity 293,445   281,580   271,963   263,431   256,025 
 Total liabilities and shareholders' equity$3,248,135  $3,106,384  $2,946,862  $2,861,351  $2,513,322 
       
 Book value per common share$22.66  $21.76  $21.03  $20.39  $19.82 
 Tangible book value per common share$18.47  $17.50  $17.31  $16.63  $17.17 
 Tangible common equity to tangible assets 7.5%  7.4%  7.7%  7.6%  9.0%
       


SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)    
Regulatory Capital Ratios (unaudited)      
        
  3/31/202112/31/20209/30/20206/30/20203/31/2020 
Summit Financial Group, Inc.      
 CET1 Risk-based Capital9.3%9.3%9.9%9.7%10.8% 
 Tier 1 Risk-based Capital10.1%10.0%10.7%10.5%11.7% 
 Total Risk-based Capital12.1%12.1%12.9%11.3%12.5% 
 Tier 1 Leverage8.5%8.6%8.7%9.0%10.2% 
        
Summit Community Bank, Inc.      
 CET1 Risk-based Capital11.1%11.1%11.8%10.5%11.7% 
 Tier 1 Risk-based Capital11.1%11.1%11.8%10.5%11.7% 
 Total Risk-based Capital12.0%12.0%12.7%11.4%12.5% 
 Tier 1 Leverage9.3%9.5%9.6%9.0%10.2% 
        


SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)    
Loan Composition (unaudited)      
        
Dollars in thousands3/31/202112/31/20209/30/20206/30/20203/31/2020 
        
Commercial $358,971 $296,832 $338,685 $311,755 $224,659 
Mortgage warehouse lines 168,582  251,815  243,730  252,472  166,826 
Commercial real estate      
     Owner occupied 358,200  351,859  312,502  336,143  331,486 
     Non-owner occupied 735,594  685,563  618,624  593,168  580,619 
Construction and development      
     Land and development 106,312  107,342  97,343  92,706  92,332 
     Construction 126,011  91,100  66,878  48,115  43,121 
Residential real estate      
     Conventional 411,103  425,520  368,008  371,225  378,540 
     Jumbo  65,851  74,185  73,836  76,360  64,944 
     Home equity 77,684  81,588  82,991  88,929  75,170 
Consumer  34,083  35,269  35,905  35,781  36,611 
Other  9,680  11,080  13,302  13,053  12,961 
Total loans, net of unearned fees 2,452,071  2,412,153  2,251,804  2,219,707  2,007,269 
Less allowance for credit losses 34,042  32,246  29,354  27,166  24,608 
Loans, net$2,418,029 $2,379,907 $2,222,450 $2,192,541 $1,982,661 
        


SUMMIT FINANCIAL GROUP INC. (NASDAQ: SMMF)    
Deposit Composition (unaudited)     
        
Dollars in thousands 3/31/202112/31/20209/30/20206/30/20203/31/2020 
Core deposits       
   Non-interest bearing checking$505,264 $440,819 $420,070 $443,190 $337,446 
   Interest bearing checking 988,204  934,185  867,442  830,258  648,214 
   Savings  656,514  621,168  598,564  561,029  457,010 
   Time deposits  456,431  460,443  414,542  422,286  384,062 
Total core deposits 2,606,413  2,456,615  2,300,618  2,256,763  1,826,732 
        
Brokered time deposits 39,125  55,454  64,120  90,279  111,156 
Other non-core time deposits 79,472  83,582  87,153  104,727  107,026 
Total deposits$2,725,010 $2,595,651 $2,451,891 $2,451,769 $2,044,914 
        


SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)    
Asset Quality Information (unaudited)     
  For the Quarter Ended
Dollars in thousands3/31/202112/31/20209/30/20206/30/20203/31/2020
       
 Gross loan charge-offs$354  $434  $1,259  $218  $698 
 Gross loan recoveries (165)  (195)  (245)  (269)  (197)
    Net loan charge-offs/(recoveries)$189  $239  $1,014  $(51) $501 
       
 Net loan charge-offs to average loans (annualized) 0.03%  0.04%  0.18%  -0.01%  0.10%
 Allowance for loan credit losses$34,042  $32,246  $29,354  $27,166  $24,608 
 Allowance for loan credit losses as a percentage     
     of period end loans 1.39%  1.34%  1.30%  1.22%  1.23%
 Allowance for credit losses on     
     unfunded loan commitments$3,705  $4,190  $3,525  $3,477  $2,984 
 Nonperforming assets:     
    Nonperforming loans     
        Commercial$848  $525  $553  $754  $560 
        Commercial real estate 17,137   14,237   4,313   5,822   5,644 
        Residential construction and development 626   235   2   14   11 
        Residential real estate 6,667   5,264   5,104   5,873   4,343 
        Consumer 54   74   31   29   65 
        Other -   -   -   35   100 
 Total nonperforming loans 25,332   20,335   10,003   12,527   10,723 
    Foreclosed properties     
        Commercial real estate 2,281   2,581   2,500   1,774   1,866 
        Commercial construction and development 3,884   4,154   4,154   4,511   4,511 
        Residential construction and development 7,129   7,791   10,330   10,645   10,774 
        Residential real estate 624   1,062   847   1,024   1,136 
 Total foreclosed properties 13,918   15,588   17,831   17,954   18,287 
   Other repossessed assets -   -   -   -   49 
 Total nonperforming assets$39,250  $35,923  $27,834  $30,481  $29,059 
       
 Nonperforming loans to period end loans 1.03%  0.84%  0.44%  0.56%  0.53%
 Nonperforming assets to period end assets 1.21%  1.16%  0.94%  1.07%  1.16%
       
 Troubled debt restructurings     
      Performing$20,462  $21,375  $22,232  $22,117  $22,966 
      Nonperforming 3,828   3,127   2,988   3,003   2,831 
 Total troubled debt restructurings$24,290  $24,502  $25,220  $25,120  $25,797 


Loans Past Due 30-89 Days (unaudited)     
  For the Quarter Ended
Dollars in thousands3/31/202112/31/20209/30/20206/30/20203/31/2020
       
 Commercial$335 $1 $147 $196 $160
 Commercial real estate 508  274  1,740  1,231  2,106
 Construction and development 330  47  422  8  53
 Residential real estate 2,146  4,405  4,464  2,763  5,178
 Consumer 96  233  160  164  222
 Other 3  5  2  3  7
    Total$3,418 $4,965 $6,935 $4,365 $7,726
       


SUMMIT FINANCIAL GROUP, INC. (NASDAQ: SMMF)
Average Balance Sheet, Interest Earnings & Expenses and Average Rates
Q1 2021 vs Q4 2020 vs Q1 2020 (unaudited)
            
 Q1 2021 Q4 2020 Q1 2020
 AverageEarnings /Yield / AverageEarnings /Yield / AverageEarnings /Yield /
Dollars in thousandsBalancesExpenseRate BalancesExpenseRate BalancesExpenseRate
            
ASSETS           
Interest earning assets           
  Loans, net of unearned interest (1)          
    Taxable$2,355,705 $27,419 4.72% $2,292,797 $27,774 4.82% $1,935,473 $25,089 5.21%
    Tax-exempt (2) 12,679  151 4.83%  13,062  156 4.75%  14,873  185 5.00%
  Securities           
    Taxable 266,289  1,295 1.97%  258,594  1,341 2.06%  258,889  1,757 2.73%
    Tax-exempt (2) 144,880  1,091 3.05%  147,979  1,122 3.02%  70,239  699 4.00%
   Interest bearing deposits other banks          
        and Federal funds sold 166,531  67 0.16%  87,151  51 0.23%  35,648  98 1.11%
Total interest earning assets 2,946,084  30,023 4.13%  2,799,583  30,444 4.33%  2,315,122  27,828 4.83%
            
Noninterest earning assets           
  Cash & due from banks 17,961     16,846     14,422   
  Premises & equipment 53,317     52,688     46,151   
  Other assets 167,343     157,436     120,846   
  Allowance for credit losses (32,706)    (30,778)    (20,452)  
    Total assets$3,151,999    $2,995,775    $2,476,089   
            
 LIABILITIES AND SHAREHOLDERS' EQUITY         
            
Liabilities           
Interest bearing liabilities           
  Interest bearing           
    demand deposits$960,190 $394 0.17% $895,325 $357 0.16% $643,955 $1,081 0.68%
  Savings deposits 642,241  645 0.41%  607,481  716 0.47%  449,021  1,337 1.20%
  Time deposits 583,723  1,457 1.01%  566,917  1,883 1.32%  615,102  2,933 1.92%
  Short-term borrowings 140,146  469 1.36%  140,243  467 1.32%  119,607  630 2.12%
  Long-term borrowings and           
     subordinated debentures 49,664  545 4.45%  49,637  547 4.38%  20,304  219 4.34%
Total interest bearing liabilities 2,375,964  3,510 0.60%  2,259,603  3,970 0.70%  1,847,989  6,200 1.35%
            
Noninterest bearing liabilities           
  Demand deposits 451,957     426,441     339,340   
  Other liabilities 38,393     34,558     28,400   
    Total liabilities 2,866,314     2,720,602     2,215,729   
            
Shareholders' equity 285,685     275,173     260,360   
  Total liabilities and           
    shareholders' equity$3,151,999    $2,995,775    $2,476,089   
            
NET INTEREST EARNINGS $26,513   $26,474   $21,628 
            
NET INTEREST MARGIN   3.65%    3.76%    3.76%
            
(1) - For purposes of this table, nonaccrual loans are included in average loan balances.     
(2) - Interest income on tax-exempt securities and loans has been adjusted assuming a Federal tax rate of 21% for all periods presented. The tax equivalent adjustment resulted in an increase in interest income of $260,000, $268,000, and $185,000 for Q1 2021,
 


Contact:Robert S. Tissue, Executive Vice President & CFO
Telephone:(304) 530-0552
Email:rtissue@summitfgi.com


 


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